Credit Score Needed for a Mortgage in Canada — 2025 Guide

Your credit score is one of the most important factors in mortgage approval and rate. Here's exactly what score you need, how it affects your rate, and how to maximize your position before applying.

Minimum Credit Scores for Canadian Mortgages

Mortgage Type	Minimum Score	Down Payment	Lender Type
CMHC-insured mortgage	680	5–19.99%	A-lenders (banks)
Conventional mortgage (uninsured)	620–680 varies	20%+	A-lenders
B-lender mortgage	500–600	20–35%	B-lenders (trust companies)
Private mortgage	No minimum	25–35%+	Private investors

Note: CMHC requires 680 for at least one borrower on an insured mortgage. Some private mortgage insurers (Sagen, Canada Guaranty) may accept 600 with compensating factors, but 680 is the standard target for first-time buyers using high-ratio mortgage insurance.

How Your Credit Score Affects Your Mortgage Rate

Even once you qualify, your score significantly impacts the rate you receive. On a $600,000 mortgage amortized over 25 years:

Credit Score	Approximate Rate	Monthly Payment	Total Interest
760+	5.09%	$3,520	$456,000
700–759	5.34%	$3,587	$476,100
660–699	5.79%	$3,714	$514,200
620–659	6.49%+	$3,961	$588,300

The difference between a 620 and a 760 score on this mortgage: over $132,000 in total interest paid. This is the single strongest financial argument for building credit before buying a home.

The Mortgage Stress Test and Credit

Since 2018, Canada's mortgage stress test requires borrowers to qualify at the higher of 5.25% or the contracted rate plus 2%. This is a separate requirement from credit score — your score gets you through the door, the stress test determines how much you qualify for. A higher credit score doesn't directly affect stress test calculations, but it unlocks lower rates, which affects what you can borrow.

Steps to Maximize Your Credit Score Before Applying

• 6–12 months before applying: Pull both credit reports and dispute any errors. Errors can take 30–60 days to resolve.
• 6 months before: Pay down all credit card balances below 30% utilization. This is the fastest lever you have.
• 3–6 months before: Do not apply for any new credit. Each hard inquiry temporarily lowers your score.
• 3 months before: Make sure all bills are paid on time — even one late payment can hurt significantly.
• At application time: Shop for rates within a 14-day window — multiple mortgage inquiries within this period count as a single inquiry.

Getting a Mortgage With Bad Credit — Realistic Options

If your score is below 620:

• B-lenders: Trust companies and monoline lenders that work with lower scores, typically requiring 20%+ down payment and charging 1–3% above prime rates
• Co-signer: A family member with strong credit co-signs the mortgage. Their credit score is used for qualification. They are equally liable for the debt.
• Private lender: Short-term, high-rate option (8–15%+) to get into a property while rebuilding credit to refinance with an A-lender in 1–2 years
• Continue rebuilding: Often the best option — waiting 12–18 months to hit 680+ saves tens of thousands in rate differentials over the mortgage life